Fitch Raises Egypt’s Banking Sector Outlook To ‘Stable’

Giving More to Your Wealth
04 Aug 2021

The esteemed credit rating agency Fitch Ratings has raised its outlook for the Egyptian banking sector’s operating environment to ‘stable’ from ‘negative’. The brighter outlook is based on an improvement in foreign currency liquidity after the sharp outflows that were witnessed at the beginning of the Covid pandemic. Foreign currency remittances also showed healthy growth. The improved outlook is also supported by renewed investor confidence after the IMF approved Egypt’s USD5.2bn SBA (Stand-By Arrangement).

Other factors that support the positive outlook include promising prospects for impressive economic growth, with Fitch forecasting real GDP growth of 6% in FY21/22 versus 3% in FY20/21. This, coupled with low interest rates and higher foreign investments, leads Fitch to expect double-digit loan growth in 2021 and further acceleration in 2022.

(Source: Fitch Ratings (English), Zawya (English), Arab News (English), Arab Finance)

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